Chapter 2 - Banking (Recurring Deposit Accounts) Exercise Ex. 2(B)

Question 1

Pramod deposits 600 per month in a Recurring Deposit Account for 4 years. If the rate of interest is 8% per year; calculate the maturity value of his account.

Solution 1

Installment per month(P) = Rs 600

Number of months(n) = 4 × 12 = 48

Rate of interest(r)= 8%p.a.

 

 

The amount that Manish will get at the time of maturity

=Rs (600 x 48)+ Rs 4,704

=Rs 28,800+ Rs 4,704

= Rs 33,504

Question 2

Ritu has a Recurring Deposit Account in a bank and deposits 80 per month for 18 months. Find the rate of interest paid by the bank if the maturity value of account is 1,554.

Solution 2

Installment per month(P) = Rs 80

Number of months(n) = 18

Let rate of interest(r)= r % p.a.

 

 

Maturity value= Rs (80 x 18) + Rs (11.4r)

Given maturity value= Rs 1,554

Then Rs (80 x 18)+Rs (11.4r) = Rs 1,554

11.4r = Rs 1,554 - Rs 1,440

Question 3

The maturity value of a R.D. Account is 16,176. If the monthly installment is 400 and the rate of interest is 8%; find the time (period) of this R.D Account.

Solution 3

Installment per month(P) = Rs 400

Number of months(n) = n

Let rate of interest(r)= 8 %p.a.

 

Maturity value= Rs (400 x n)+

Given maturity value= Rs 16,176

Then Rs (400 x n)+= Rs 16,176

1200n + 4n² + 4n = Rs 48,528

4n² + 1204n = Rs 48,528

n² + 301n - 12132 = 0

(n + 337)(n - 36)=0

n = -337 or n = 36

Then number of months = 36 months = 3 years.

Question 4

Mr. Bajaj needs 30,000 after 2 years. What least money (in multiple of 5) must he deposit every month in a recurring deposit account to get required money after 2 years, the rate of interest being 8% p.a.?

Solution 4

Let installment per month = Rs P

Number of months(n) = 2 × 12 = 24

Rate of interest = 8%p.a.

 

Maturity value= Rs (P x 24) + Rs 2P = Rs 26P

Given maturity value = Rs 30,000

Question 5

Mr. Richard has a recurring deposit account in a post office for 3 years at 7.5% p.a. simple interest. If he gets Rs. 8,325 as interest at the time of maturity, find:

 i. the monthly income

 ii. the amount of maturity

Solution 5

Let the monthly deposit be P

Interest = Rs. 8,325

Rate of interest = 7.5%

Time = 3 years = 36 months

Question 6

Gopal has a cumulative deposit account and deposits 900 per month for a period of 4 years he gets 52,020 at the time of maturity, find the rate of interest.

Solution 6

Installment per month(P) = Rs 900

Number of months(n) = 48

Let rate of interest(r) = r %p.a.

Maturity value= Rs (900 x 48) + Rs (882)r

Given maturity value = Rs 52,020

Then Rs (900 x 48) + Rs(882)r = Rs 52,020

882r = Rs 52,020 - Rs 43,200

r = 

 

Question 7

Deepa has a 4-year recurring deposit account in a bank and deposits 1,800 per month. If she gets 1,08,450 at the time of maturity, find the rate of interest.

Solution 7

Installment per month(P) = Rs 1,800

Number of months(n) = 4 × 12 = 48

Let rate of interest(r)= r %p.a.

 

Maturity value= Rs (1,800 x 48) + Rs(1,764)r

Given maturity value= Rs 1,08,450

Then Rs (1,800 x 48) + Rs(1764)r = Rs 1,08,450

1764r = Rs 1,08,450 - Rs 86,400

 

r = 

Question 8

Mr. Britto deposits a certain sum of money each month in a Recurring Deposit Account of a bank. If the rate of interest is of 8% per annum and Mr. Britto gets Rs. 8,088 from the bank after 3 years, find the value of his monthly installment.

Solution 8

Let the value of the monthly installment be Rs. P.

 

 

 

Thus, the value of his monthly installment is Rs. 200.

Question 9

Solution 9

Question 10

Katrina opened a recurring deposit account with a Nationalised Bank for a period of 2 years. If the bank pays interest at the rate of 6% per annum and the monthly installment is Rs. 1,000, find the :

(i) interest earned in 2 years

(ii) maturity value

Solution 10

Question 11

Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. simple interest. If he gets Rs. 1,200 as interest at the time of maturity, find:

(i) the monthly instalment

(ii) the amount of maturity. 

Solution 11

Interest, I = Rs. 1,200

Time, n = 2 years = 2 × 12 = 24 months

Rate, r = 6%

(i) To find: Monthly installment, P

Now,

So, the monthly installment is Rs. 800.

 

(ii) Total sum deposited = P × n = Rs. 800 × 24 = Rs. 19,200

∴ Amount of maturity = Total sum deposited + Interest on it

= Rs. (19,200 + 1,200)

= Rs. 20,400.